Last Updated:June 17, 2025, 17:51 IST
There are several government-backed retirement savings plans for senior citizens that provide secure returns.
It’s advisable to start investing early to build a sizable retirement corpus.(Representative Image)
As people grow older and reach the age of retirement, financial stability becomes a top priority. Savings become the primary source of income for most during these golden years. Hence, senior citizens often seek safe and stable investment options that provide reliable returns.
There are also several government-backed schemes for senior citizens, which offer secure returns. For a steady income during retirement years, the investments could be diversified across several schemes, which could be a mix of secure and high-return instruments.
Currently, there are a myriad of options available for senior citizens in India to choose from and secure their future. Let us delve into various investment instruments that can ensure a steady income in your golden years.
Senior Citizens Savings Scheme (SCSC)
The Senior Citizen Savings Scheme (SCSS) is a government-backed savings scheme that offers a secured return. Introduced in 2004, this scheme is designed for senior citizens aged 60 and above. It provides financial security post-retirement, with a fixed interest rate of 8.2 per cent (as of June 12, 2025). One can invest between Rs 1,000 and Rs 30 lakhs during a 5-year period, however, you can choose to extend it for another three years. The investment provides tax benefits under Section 80C of the Income Tax Act, 1961. A TDS (Tax Deducted at Source) of 10% will be applicable if the interest earnings exceed Rs 50,000 in a financial year.
National Pension System (NPS)
Another government-backed retirement savings plan for senior citizens is the National Pension System (NPS). It provides financial security and regular income to secure their future post-retirement. With this scheme, individuals can invest systematically in a mix of equity, corporate bonds and government securities, offering both growth and stability. This scheme also provides a tax benefit under Section 80C. You can withdraw up to 60 per cent of the total corpus after retirement or reaching 60 years and the remaining 40% can be used for pension or annuity plans.
Post Office Monthly Income Scheme (MIS)
The next savings plan you can consider is the Post Office Monthly Income Scheme. It is a reliable savings plan for senior citizens, offering a fixed monthly income. This is a safe, government-supported monthly income scheme for those seeking steady returns. To start a POMIS account, the minimum investment amount is just Rs 1,000, and it can go up to Rs 9 lakh for a single investor for a minimum of 5 years. However, one can invest up to Rs 15 lakh under a joint account. Currently, the interest rate stands at 7.4% per annum.
Fixed Deposits
Bank Fixed Deposits, also known as FDs, have been a go-to investment option in India for years. Known for their steady returns, FDs provide better interest rates along with a range of other benefits. Individuals aged 60 and above can deposit a lump sum amount in a bank for a fixed tenure ranging from 7 days to 10 years to earn guaranteed returns at an interest rate up to 8.25 per cent per annum. Moreover, there are some FDs that offer tax benefits under Section 80C for a 5-year lock-in period and more.
National Savings Certificate (NSC)
The National Savings Certificates (NSC) scheme is also a popular choice among senior citizens. This government-backed savings plan provides guaranteed returns, making it a desirable option among elderly people. With a tenure of five years, this scheme offers 7.7 per cent interest per annum. What’s even more interesting? One can start investing in NSC with as little as Rs 1,000 and the investments are eligible for tax benefits under the overall Section 80C limit of Rs 1.5 lakhs.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
- Location :
Delhi, India, India
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